In a significant shift for U.S. banking and cryptocurrency regulation, President Donald Trump has officially repealed Staff Accounting Bulletin 121 (SAB 121), a controversial rule imposed by the Securities and Exchange Commission (SEC).
What Was the Rule?
SAB 121 required banks to classify crypto assets held on behalf of customers as liabilities. This created regulatory hurdles that discouraged many financial institutions from entering the digital asset space.
The rule’s repeal follows efforts from both the House and Senate, which passed a bill last year to overturn it. Although former President Biden vetoed the legislation, Trump’s administration swiftly reversed the decision, signaling a more crypto-friendly stance.